HM Revenue & Customs (HMRC) is phasing out paper VAT returns. From April 2010 if your annual turnover is £100,000 (excluding VAT) or more you will have to submit your VAT return online and pay your VAT electronically.
If you think you will have to submit your VAT Return online from 1 April 2010, you should take the following action now:
- Identify your preferred form of electronic payment (eg Direct Debit, Internet banking etc) and set up the necessary arrangements.
- Register and enroll for the VAT online service in advance of your first return. This way any technical teething problems can be resolved before the first return is due, as penalties will apply for late returns. (You will need to enroll to submit your VAT Return online, whether you choose to use commercial software or HMRC’s free software.)
- Consider whether you need to change any of your business processes for checking and signing off your VAT Return
HMRC have written to all businesses that they think will need to submit online VAT returns and pay electronically. If you do not agree that your turnover is as high as £100,000 and you want to appeal against HMRC’s decision to online filing, you should contact us and we will help you with your appeal.